News [TheStreet] Intel Shares Fall As Chipmaker Beats Earnings, But Posts Weak Guidance

[Hitman928]

Adjusted earnings per share came in at 89 cents, beating estimates of 87 cents. The actual earnings number was a 2% year-over-year increase. GAAP EPS was 87 cents, versus analyst's estimates of 81 cents. Revenue was $16.1 billion, beating analyst's expectations of $16.03 billion. The actual revenue number was flat year-over-year.

Management guided for non-GAAP EPS of $4.35 for all of 2019, after having guided for $4.60 previously. Analyst's were looking for the guidance of $4.50. Intel guided for $69 billion of revenue for the year, against analyst's expectations of $71.04 billion.

Haven't looked at the breakdown yet.

 

[Hitman928]

revenue for Intel’s data-centric businesses fell 5% year over year in the first quarter, the company said. Its Data Center Group reported revenue of $4.9 billion for the quarter, down from $5.2 billion during the same quarter last year.

The group’s enterprise and government revenue saw the steepest decline for the quarter at 21%. The communications service provider segment declined 4%, while Intel’s cloud segment grew 5%.


An additional problem for Intel is the company hasn’t been making enough central processing units (CPUs) to meet PC demand. It’s PC-centric business posted a 4% increase, however, based in part on strength in gaming and high performance products.

https://www.cnbc.com/2019/04/25/intel-first-quarter-2019-earnings.html

 

[krumme]

Its absolute stunning revenue. It's a damn money cannon. Lol.
It's incredible they can't give us faster and better cpu with such a gigantic profit and revenue. But I guess some good things is waiting for us !

 

[jpiniero]

Yeesh...

Compared to the previous year: Notebook volume: -7%, Desktop -8%, Data Center: -8%. ASP's for Notebook and Desktop were solidly higher, but I don't know if that is really sustainable.

 

[Markfw]

This looks like the hump to me. Before the floor falls out from Intel, but its really telling IMO.

 

[Phynaz]

This looks like the hump to me. Before the floor falls out from Intel, but its really telling IMO.

The floor is falling out from the entire semiconductor industry. Including AMD’s manufacturer.

TSMC (TSM) reported its worst dip in profit in seven years as weak smartphone demand and high semiconductor inventory impacted its factory utilization rate. Moreover, a faulty chemical also resulted in wastage of wafer output, adding to the production cost and reducing the gross margin.
The effect of the lower gross margin trickled to the down line and reduced its operating margin by 760 basis points sequentially to a seven-year low of 29.4% in the first quarter. The foundry’s net income fell 38.6% sequentially to $2 billion, its steepest sequential decline since the third quarter of 2011.

https://articles.marketrealist.com/...spending-focus-is-high-performance-computing/


China stopped ordering chips.

 

[Arkaign]

The floor is falling out from the entire semiconductor industry. Including AMD’s manufacturer.

This is true, and it's going to be industry wide and global obviously.

Intel, AMD, TSMC, GF, Nvidia, Apple, Microsoft, all of these will be hit from merely pretty badly to nearly catastrophic levels. The world economy is hitting a problem stretch. Amazon will probably outperform these, but only because they're actively absorbing more of the overall retail sphere, at the cost of other players.

I guess as a side effect of this, this may be the end of mid-range GPUs being $350+ at least. I can't imagine the market in a global depression will support it.

 

[Phynaz]

I don’t think it’s that bad. Chinese companies bought a lot of chip inventory late last year to hedge against a tariff war. They just need to burn through that inventory.

All the semi’s are expecting a pickup in the second half of the year.

 

[krumme]

The floor is falling out from the entire semiconductor industry. Including AMD’s manufacturer.



https://articles.marketrealist.com/...spending-focus-is-high-performance-computing/


China stopped ordering chips.

Meh. Amd business model and cpu arch is made for such a situation. No one ordering expensive mobile soc? Fine lower price for the 70mm2 7nm zen2 dies.

 

[moinmoin]

As long as none of the big players' CEO is releasing some stupid burning platform memo to shot themselves in the foot they should all be fine.

 

[jpiniero]

I don’t think it’s that bad. Chinese companies bought a lot of chip inventory late last year to hedge against a tariff war. They just need to burn through that inventory.

All the semi’s are expecting a pickup in the second half of the year.

Just in time for Rome's release, eh?

 

[Ajay]

Just in time for Rome's release, eh?

Yeah AMD and HiSilicon are ramping up pretty fast since the beginning of this quarter.